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working oversea
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asked on Feb 19, 2009 at 21:52
by   carol
Hi,im a malaysian Chinese but working at Philippine.

Q1) I had pay income tax to Philippine gov. And my salary is bank in to my Malaysia bank account.

a) Shall i declare to Malaysia Inland Revenue that im working at oversea? But heard that, oversea worker will be charge higher price when buying property at Malaysia.
Pls help to verified on this? And if this is true, any idea about the price different on the same property, if compare to the Malaysian who working in Malaysia?

b) alternative way is, i declare myself working under my bro company, without mention about working oversea.
What action will be taken, if they found out, im cheating on this?

Please kindly advice the pro and cons for both, with the concern on i'm planning to buy a house in 2 years time.
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answered on Feb 26, 2009 at 08:59
by   gtchye
1a) Assuming you are not a tax resident of Malaysia, (Please refer Sec 7 of the Malaysian Income Tax Act 1967 for definition of tax resident), income remitted into Malaysia is not taxable in Malaysia (Para 28, Sch 6, Income Tax Act).

Property price is agreed upon between the buyer and the seller, nothing to do with Income Tax since you are a Malaysian.

1b) The Income Tax knows if you are in Malaysia or not. They may ask to see your passport. Assuming your bro's co is in Malaysia and pay you salary when you are not a tax resident in Malaysia, the you will be taxed as non-resident. The rate is 27% of your income, flat, without any personal reliefs.

I will update more tax issues in my blog www.mytaxtips.wordpress.com from time to time.
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answered on Mar 1, 2009 at 04:24
by   carol
gtchye, thanks for your reply.

my consequent questions as below:

1.Money remitted into Malaysia is not taxable. Will it be different case depends on the way of remit.
Mine is through money changer.

2.A non-resident Malaysian buying a new house, will still entitle to the normal launching price?
Or i should open a new thread under Real Estate Law?

Thanks
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answered on Mar 1, 2009 at 11:15
by   gtchye
1. No difference. I know some people, even companies, send money through money changers because it is cheaper or some times they do not want to go through the banks for regulations purposes.

2. You need to distinguish between non-Malaysians and non-residents under the Income Tax Act. You can be a Malaysian and a non-tax resident under the Income Tax Act. Or you can be a non-Malaysian and yet a tax-resident. If you are buying properties from developers directly, then you can ask them if they have different pricing for Malaysians and foreigners.
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